While acknowledging transparency reforms, the global index provider still flags concerns about consistency in policy implementation and impact.
A logo of the Indonesia Stock Exchange (IDX) is seen at the IDX building in Jakarta on Sunday, April 19, 2026. (JP/Iqro Rinaldi)
Global index compiler MSCI has decided to maintain Indonesia in the emerging market category but says a downgrade remains possible as it continues to assess the effectiveness of domestic stock market reforms. In its June review, MSCI acknowledged the transparency reforms introduced by the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX) and the Indonesian Central Securities Depository (KSEI).
The measures include enhanced disclosure of shareholders that own more than 1 percent of a listed company rather than 5 percent previously, a more granular investor classification, a high shareholding concentration (HSC) framework and a road map to raise the minimum free float to 15 percent for IDX stocks.
“While these announcements represent a step in the right direction, what matters for international institutional investors is the consistent implementation and sustained effect of these measures across the market,” MSCI stated in the review, published on Tuesday in the United States.
